16 Jun 2015
AUD/NZD: Gains capped at 1.11 after RBA minutes
FXStreet (Mumbai) - The AUD/NZD pair is struggling to extend gains over and above 1.11 handle even though the RBA minutes showed policymakers are concerned about the strength in the Aussie.
Dovish RBA minutes restrict AUD
The minutes reiterated the message that further depreciation in the AUD is likely and necessary. The minutes show policy makers see monetary policy remaining accommodative, especially as the Aussie has remained stronger than desired. Consequently, the AUD is unable to extend gains above 1.11.
However, the pair is still up 0.06% for the day. Moreover, the losses are being restricted due to a surprise rate cut announced by the RBNZ last week.
AUD/NZD Technical Levels
The pair has an immediate resistance at 1.1120, above which gains could be extended to 1.1300. On the flip side, a break below 1.1067 (hourly 50-MA) could push the pair down to 1.1028.
Dovish RBA minutes restrict AUD
The minutes reiterated the message that further depreciation in the AUD is likely and necessary. The minutes show policy makers see monetary policy remaining accommodative, especially as the Aussie has remained stronger than desired. Consequently, the AUD is unable to extend gains above 1.11.
However, the pair is still up 0.06% for the day. Moreover, the losses are being restricted due to a surprise rate cut announced by the RBNZ last week.
AUD/NZD Technical Levels
The pair has an immediate resistance at 1.1120, above which gains could be extended to 1.1300. On the flip side, a break below 1.1067 (hourly 50-MA) could push the pair down to 1.1028.